Shares of mining companies such as Ashapura Minechem, Sandur Manganese & Iron Ores, Maithan Alloys surged in the noon trade on Wednesday after the Union Cabinet cleared a new mineral exploration policy.

At 12.10 am, shares of Ashapura Minechem was trading 11.26 per cent up at Rs 75.10. The scrip opened at Rs 70.30 and has touched a high and low of Rs 77.70 and Rs 70.30, respectively, in trade so far. Sensex was up 116.66 points, or 0.44 per cent, at 26641.21.

“The Indian mining sector needs to build a robust pipeline of mines that can be auctioned and this is a step forward in the right direction. Historically, exploration spends and coverage has been relatively low compared to other countries,” said Anjani Kumar Agarwal, Partner and National Leader – Metals and Mining, EY.

Hopefully, with this policy enablement, global specialist explorers with modern technology and expertise will be attracted to India. They will be willing to embrace exploration risks and be more engaged with the evolving mining scene in the country if they see a stable, meaningful and potentially rewarding policy environment,” he added.